MICROSOFT has stepped up as a potential bidder for Yahoo!, making a deal to review the struggling Internet pioneer’s financial books, The New York Times reported on Wednesday.
In signing a non-disclosure agreement, according to the Times, Microsoft has joined a small pool of suitors that includes private equity firms that appear to be preparing serious bids for Yahoo!.
Microsoft has reportedly been collaborating with private investors to assemble a multi-billion-dollar offer to purchase the Internet firm that spurned the US software giant’s takeover effort in 2008.
Microsoft has since arranged for its Bing search engine to power queries at Yahoo! websites and to share in revenue from online advertising sold by the Sunnyvale, California-based firm.
Microsoft has reason to protect its relationship with Yahoo! by not letting it fall into the hands of a potential competitor, according to analysts.
At least nine private equity firms are reported to be eyeing Yahoo! and its global audience of 700 million monthly visitors to the company’s various websites, including Yahoo! News, Yahoo! Finance and Yahoo! Sports.
If Microsoft were to succeed in buying Yahoo! it is believed it would spin off the company’s Asia assets, which include online commerce titan Alibaba.
Alibaba is 43 percent owned by Yahoo! and is considered one of its best assets, but the Chinese firm reportedly feels it has outgrown its US partner.
